Bitcoin Falls Below $90,000—Is the Rebound Over?

Source: CryptoNewsNet Original Title: Bitcoin Price Falls Below $90,000 — Is The Recovery Over? Original Link:

Bitcoin Price Performance and Market Analysis

Over the past week, Bitcoin’s price has been volatile, with neither bulls nor bears able to establish a clear advantage. In the latest tug-of-war, this leading crypto asset appears to be under pressure from the bears.

As the weekend approaches, Bitcoin’s price has pulled back from a local high of around $94,000 to below the psychological $90,000 level. This retracement has created uncertainty among market participants, with investors questioning whether this is a short-term correction or the end of the rebound.

$80,500 May Become the Next Local Low

According to on-chain analysis, losing the $89,800 price level was key to Bitcoin falling below $90,000 this time. Analysts note that if Bitcoin fails to hold $89,800, two scenarios may unfold: a bull accumulation phase or a bear redistribution phase.

For the bulls, the accumulation period may come with lower prices but will ultimately drive Bitcoin back above the local highs. For the bears, the redistribution phase could push Bitcoin down to the $70,000 level.

On-chain analysis indicates that Bitcoin’s failure to hold this key on-chain level has increased the likelihood of the market entering a broader consolidation phase. “Consolidation is the reason; big rallies or drops are just the result,” analysts commented earlier.

Additionally, the next critical level to watch is $86,500. If this level is lost, a new local low may form around $80,500. This low could provide investors with a good opportunity to buy the dip.

Bitcoin Price Overview

As mentioned above, the past week has been turbulent for Bitcoin. On Monday, December 1, Bitcoin fell to a low of $84,600. After early-month volatility, Bitcoin rebounded sharply to around $94,000 on Thursday, December 4.

At the time of writing, the leading cryptocurrency is trading at approximately $89,415, down more than 3% over the past 24 hours. According to statistics, Bitcoin has fallen nearly 10% over the past year.